IVG Immobilien AG has now launched its new closed-end real estate fund "EuroSelect 17 Office Center Amstelveen". After the successful placement of the Luxembourg Funds now a top-notch office building ensemble south of Amsterdam which is almost completed comes next. The Dutch subsidiary of the auditors KPMG has leased the property long-term as corporate headquarters. The annual payout is expected to be 5.15 per cent after taxes.
Georg Reul, IVG board member in charge of the Funds Division: "Private investors are looking for sound investments at the moment. The Amstelveen Office Center is notable for its outstanding infrastructure link to metropolitan Amsterdam and the excellent quality of the property. The new building has been developed following KPMG's wishes and has been leased for 15 years. This offers an opportunity for stable profits for our private investors."
This is the second time that IVG Funds is investing in the Netherlands. In 2005 an office property in Amersfoort was offered for investment and so far has not only met expectations but succeeded in providing investors with a special payout of one percent for the second half of 2008.
Amsterdam an economically successful metropolitan region
The office is located in the region of Greater Amsterdam directly adjacent to the A9 motorway between Amsterdam and Schiphol airport. The district has developed into a demanded office location. The relatively limited supply of high-quality Grade A space makes the location interesting for investors over the long term. Over the short- and medium-term, the Amstelveen Office Center will presumably be the only noteworthy new office space coming to market.
Unusual fund property
The impressive office ensemble of the architect office Marcel van der Schalk has been designed and developed following the ideas and needs of KPMG.
Altogether the property has six office sections. The fund property building sections A, B and C with a rental space of 37,525 m² is equipped according to very high standards and is remarkably energy-efficient. The complex is scheduled for completion during 4th quarter 2009. Purchase price will be 159.3 million. The additional three building sections, which are also been used by KPMG, are property of institutional Spezialfonds of IVG. Therefore, IVG will be manager of the whole office ensemble for the long run.
KPMG is sole tenant
The fund property has been let initially for fifteen years to KPMG, the international auditing company. After ten years the tenant will have a special right of termination for up to 20,000 m² or approximately 55 percent of the space. The rental price is indexed and is oriented to the Dutch consumer price index.
The investment offer
The investment volume totals 179.4 million. With an equity capital of 99.4 million (94.7 million plus 5 percent premium) the funds shows a solid capital ratio of 55 percent.